Cadence Design Systems, Inc.

Condensed Consolidated Income Statements

For the Three Months and Years Ended December 28, 2013 and December 29, 2012

(In thousands, except per share amounts)

(Unaudited)

Three Months Ended

Years Ended

December 28,
2013

December 29,
2012

December 28,
2013

December 29,
2012

Revenue:

Product and maintenance

$    350,079

$    318,513

$    1,357,934

$    1,212,429

Services

26,643

27,072

102,182

113,995

Total revenue

376,722

345,585

1,460,116

1,326,424

Costs and expenses:

Cost of product and maintenance

41,757

24,437

132,245

118,516

Cost of services

17,274

19,353

67,956

72,607

Marketing and sales

94,384

95,604

378,157

342,278

Research and development

135,465

118,382

534,022

454,085

General and administrative

29,481

27,712

121,314

112,076

Amortization of acquired intangibles

5,157

3,772

19,416

15,077

Restructuring and other charges 

15,405

64

17,999

113

Total costs and expenses

338,923

289,324

1,271,109

1,114,752

Income from operations

37,799

56,261

189,007

211,672

Interest expense

(9,208)

(8,902)

(37,581)

(34,742)

Other income, net

842

5,369

7,570

11,341

Income before benefit for income taxes 

29,433

52,728

158,996

188,271

Benefit for income taxes

(8,272)

(261,146)

(5,247)

(251,677)

Net income 

$    37,705

$    313,874

$     164,243

$      439,948

Net income per share - basic

$        0.13

$          1.15

$           0.59

$            1.63

Net income per share - diluted

$        0.13

$          1.10

$           0.56

$            1.57

Weighted average common shares outstanding - basic

280,083

272,884

277,796

270,479

Weighted average common shares outstanding - diluted

294,663

286,289

294,564

280,667